Lamb Weston Holdings Inc (LW)
Pretax margin
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | May 26, 2024 | Feb 29, 2024 | Feb 25, 2024 | Nov 30, 2023 | Nov 26, 2023 | Aug 31, 2023 | Aug 27, 2023 | May 31, 2023 | May 28, 2023 | Feb 28, 2023 | Feb 26, 2023 | Nov 30, 2022 | Nov 27, 2022 | Aug 31, 2022 | Aug 28, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 498,500 | 537,300 | 514,200 | 728,200 | 739,200 | 840,000 | 940,800 | 1,056,300 | 1,171,800 | 1,044,800 | 1,334,400 | 1,270,200 | 1,182,700 | 1,275,700 | 844,800 | 735,300 | 823,700 | 687,600 | 602,100 | 579,100 |
| Revenue (ttm) | US$ in thousands | 6,451,300 | 6,387,400 | 6,480,200 | 6,337,600 | 6,132,800 | 6,253,000 | 6,381,000 | 6,588,000 | 6,796,600 | 6,759,400 | 6,712,200 | 6,300,500 | 5,896,200 | 5,477,800 | 5,060,200 | 4,932,200 | 4,804,200 | 4,680,800 | 4,554,000 | 4,383,400 |
| Pretax margin | 7.73% | 8.41% | 7.93% | 11.49% | 12.05% | 13.43% | 14.74% | 16.03% | 17.24% | 15.46% | 19.88% | 20.16% | 20.06% | 23.29% | 16.69% | 14.91% | 17.15% | 14.69% | 13.22% | 13.21% |
May 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $498,500K ÷ $6,451,300K
= 7.73%
The pretax margin of Lamb Weston Holdings Inc. exhibits notable fluctuations over the analyzed period, reflecting varying profitability trends.
From August 2022 through early 2023, the pretax margin remained relatively stable, ranging between approximately 13.21% and 17.15%. This period indicates a modest margin with limited volatility, suggesting a stable operational environment during these months.
In the subsequent months leading into mid-2023, the pretax margin experienced a significant increase, peaking at approximately 23.29% in late May 2023. This upward movement signifies an improved profitability position, potentially driven by favorable market conditions, cost management, or higher prices.
Following this peak, the margin demonstrated a downward trend, declining to around 12.05% by the end of May 2024. This decline indicates a contraction in profitability margins, possibly due to rising costs, competitive pressures, or other operational challenges.
Overall, the pretax margin shows a pattern of stability during the initial period, followed by a substantial increase during mid-2023, and a subsequent decline into 2024 and early 2025. The observed variability underscores the importance of monitoring market factors and internal cost controls affecting the company's pre-tax profitability over time.
Peer comparison
May 31, 2025